5. Supply and demand

Somehow, the words ‘supply and demand’ are seen to be the essence of economics.

(Just as the words ‘cause and effect’ seem to convey the essence of the arguments about what is true in economics.)

These phrases have become linked with economics.

Unfortunately, economists have become completely befuddled with the application of the concept of ‘cause and effect’ to the study of ‘supply and demand’.

We look more closely here.

We’ve got no money, so we’ve got to think.~Ernest Rutherford

We have too many high sounding words, and too few actions that correspond with them.~Abigail Adams

The biggest bubble out there is central bank credibility. If Draghi was a stock he'd be on a P/E of 200! Yellen's on 100. When that bubble pops, all hell will break loose again, and there you really just want to be in cash.~Gerard Minack